Trump Administration Keeps ‘Status Quo’ on Iran Sanctions

President Donald Trump gestures while giving the commencement address at the U.S. Coast Guard Academy on Wednesday in New London, Conn.
Photo:
Associated Press

The Trump administration's decision to renew waivers under the nuclear deal and add seven to its blacklist adheres to the status quo regarding the U.S. posture on Iran, sanctions experts said.

On Wednesday, the U.S. Treasury Department put seven individuals and entities, including two senior Iranian defense officials and a China-based network, under sanctions for their alleged roles in Iran's missile programs. Treasury said it took action in conjunction with a report on Iranian human rights violations released by the U.S. State Department. An official told The Wall Street Journal that the administration is also signing a sanctions waiver for Iran in line with the terms of the nuclear agreement.

Together, experts said, the twin moves of renewing waivers and expanding non-nuclear sanctions targets "preserve the status quo" under the nuclear deal as the administration continues a broader policy review. President Donald Trump criticized the nuclear agreement during the campaign, but he has toned down his remarks since taking office.

"The administration is taking the necessary steps to preserve the [nuclear agreement], but it is not the prism through which the bilateral relationship will be managed," said Sean Kane, a former deputy assistant director for policy at Treasury's Office of Foreign Assets Control who now is an attorney at the firm Hughes Hubbard & Reed.

Douglas Jacobson, a partner at the international-trade focused firm Jacobson Burton Kelley PLLC, agreed, saying the administration is signaling that it will "de-link the nuclear agreement from other Iranian issues of concern," and will use sanctions authorities not curtailed by the deal to keep the pressure on Iran.

Those seeking more pressure on Iran welcomed the moves. Mark Dubowitz and David Albright, in a Wall Street Journal op-ed, said Mr. Trump "needs to take his time" while conducting the review, saying the waiver renewal and expanded blacklist is "an elegant way to maintain pressure" on Tehran. Mr. Dubowitz is the chief executive of the Foundation for Defense of Democracies, and Mr. Albright is the president of the Institute for Science and International Security.

"It’s a clear message to foreign banks and companies looking to do business with Iran: You will be taking significant risks if you deal with a country still covered by a web of expanding non-nuclear sanctions," the writers said.

Write to Samuel Rubenfeld at Samuel.Rubenfeld@wsj.com. Follow him on Twitter at @srubenfeld.